ADAMA SCIENCE AND TECHNOLOGY

UNIVERSITY

SCHOOL OF ELECTRICAL ENGINEERING

AND
COMPUTING
Department of Computer Science and Engineering

Project Management Project

Title: Smart Traffic Management System

Section 1
Group Members ID Number
1. Soreti Hawera UGR/19762/12
2. Tole Fikadu UGR/19764/12
3. Walelign Birhanu UGR/19643/12
4. Tolasa Ijara UGR/19588/12
5. Derese Daniel UGR/19834/12

Instructor: Mr. Abay (MSc.)

Submission date: 26/6/2023
Dear concerned body,

We are excited to present our proposal for the "Smart Traffic Management System" project.
With our expertise in the field, we believe that this project is not only feasible, but it will also
make a significant impact on the traffic situation in our community.

Our proposed system is an innovative solution that leverages cutting-edge technologies such as
artificial intelligence, machine learning, and the Internet of Things to manage traffic flow more
efficiently. By integrating various data sources, such as video cameras and traffic sensors, we
can accurately predict traffic congestion and adjust traffic signals in real-time to optimize traffic
flow and reduce waiting times.

We understand the challenges related to traffic management in our city, and we are confident
that our proposed system will address these issues and improve the quality of life for city
residents. Using a smart traffic management system will help reduce fuel consumption, cut
down on harmful emissions, and, most importantly, save valuable time for daily commuters.

We can provide a detailed technical proposal that outlines our proposed system's development,
implementation, and deployment process upon acceptance of our proposal. We believe that our
team has the right blend of skills, experience, and passion to execute this project successfully.

Thank you for considering our proposal. Please do not hesitate to contact us if you have any
questions or would like more information about our system.

1
Sincerely yours,

Tole et al.

Table of Contents
1. Executive Summary 1

2. Summary of Project Background and History 2

2.1. Purpose of the Project 3

2.2. The Project Objectives 4

2.3. Proposed Project Basic Strategy 5

2.4. Project Location 6

3. Market and Demand Analysis 7

3.1. Annual Data on Supply and Demand 8

3.2. Raw materials and Supplies 9

4. Raw materials and Supply Study 10

4.1. Annual Supply Requirements for Materials Inputs 11

4.2. Availability of Critical Inputs 12
5. Location, Site and Environment 13

5.1. Ecological and Environmental Impact 14

6. Engineering and Technology 15

6.1. Production Programs 16

6.2. Plant Capacity 17

2
7. Organizational and Overhead Costs 18

7.1. Plant Organization and Management 19

7.2. Overheads Costs 20
8. Human Resources 21

8.1. Requirements in terms of Categories and Functions 22

8.2. Requirements in terms of Socioeconomic and Cultural Environment 23
8.3. Requirements in terms of Project Related Requirements 25
8.4. Requirements in terms of Availability and Recruitment 27
8.5. Requirements in terms of Training Plan 28
9. Financial Analysis and Investment Appraisal 29

9.1. Estimation of the life of the Project 30

9.2. Determining means of Financing 31
9.3. Estimates of Sales and Production 32
9.4. Estimates of Operating Expenses 33
9.5. Probability Projection/ Income Statement 34
10. Project Implementation Schedule 35

3
1. Executive Summary

We aim to develop a Smart Traffic Management System to efficiently manage traffic flow by
leveraging modern technologies like artificial intelligence, machine learning, and the Internet of
Things. We have a background and history foundation to build on with the goal of reducing
traffic congestion, saving commuters time and fuel consumption, and improving the quality of
life for residents. The market and demand analysis suggests that the system will be widely
accepted and used by commuters in the city.

The raw materials and supply study suggest an adequate and readily available supply of all the
required materials for our project without any significant logistical difficulties. We will
carefully select the most suitable site and location for the project, considering the environment,
legal requirements, and zoning regulations, among others.

In terms of engineering and technology, we will use cutting-edge technology solutions to

predict traffic congestion and automatically adjust traffic signals in real time, optimizing traffic
flow. The project team has the right blend of skills, experience, and passion to execute our
project successfully, as demonstrated in the organization and overhead cost study.

The human resources study suggests that our project requires a team of experts in artificial
intelligence, machine learning, software engineering, traffic management, and more. Adequate
salaries and benefits will be provided to ensure that the team is highly motivated and committed
to our project's success.

A Financial analysis and investment appraisal study have been carried out, projecting an
attractive return on investment for our project's investors. The project implementation schedule

4
shows that our project will take approximately 18 months to be completed, with different stages
and milestones outlining our progress.

Overall, our Smart Traffic Management System project is viable and has the potential to make a
significant impact on traffic and transportation in the city, making it suitable for investment
consideration.

2. Project Background and History

The History of Traffic Management System started in 1972 to centrally control the freeway
system in the Twin Cities metro area. The Traffic Management System aims to provide
motorists with a faster, safer trip on metro area freeways by optimizing the use of available
freeway capacity, efficiently managing incidents and special events, providing traveler
information, and providing incentives for ride-sharing.

The Ethiopian situation is such that in 2010 the reported number of road traffic fatalities had
been 2,581 of which 76% involved males and 24% females. In the same year, the estimated
economic loss due to road traffic crashes is 0.8–1.0% of the GDP. According to, Ethiopia loses
about 500 million Br (equivalent to $25 million) and 3,000 lives each year from road accidents.
About 80% of these losses are caused by drivers’ faults and the remaining are due to vehicle
technical problems, low quality of roads and other causes. The existence of unreliable mobility
traffic control and management system may also be one cause. Organized data on traffic-related
deaths in Ethiopia in 2007 are depicted.

The transportation system provides a way for movement and a medium for reaching
destinations. An inadequate transportation system hampers economic activities and creates
hindrances to development.

Traffic light control systems are widely used to monitor and control the flow of automobiles
through the junction of many roads. However, the synchronization of multiple traffic light
systems at adjacent intersections is a complicated problem given the various parameters
involved. Conventional systems concentrate mainly on allotting equal time to all the lanes. In

5
addition, the mutual interference between adjacent traffic light systems, the disparity of car flow
with time, the accidents, the passage of emergency vehicles, and the pedestrian crossing are not
implemented in the existing traffic system. This leads to traffic jams and congestion.

2.1. Purpose of the Project

The purpose of the Smart Traffic Management System is to improve transport operations and
transport services profitability, reduce traffic jams and fatalities, provide sufficient driving
training, maintain road infrastructure, and maintain traffic law enforcement. Manual control of
traffic by traffic police has not proved to be efficient. Also, the predefined set time for the
signal in all circumstances (low and high traffic density) has not solved this problem. A model
to effectively solve the above-mentioned problems by using the Internet of Things (IoT) is
proposed. We use the cloud for internet-based computing, where different services such as
servers, storage and application are delivered for traffic management. A network of sensors is
used to track the number of vehicles and the traffic congestion at the intersections on a road and
rerouting will be done on the basis of the traffic density on the lanes of a road. The objective of
this project is to design and develop an Internet of Things (IoT) based Smart Traffic monitoring
and controlling system. The system will clear the path of the traffic by controlling the traffic
lights. The traffic man will have an Android phone that will connect to the system using the
Internet of Things (IoT) link and set the path on the application.

2.2. The Project Objectives:

2.2.1. Main Objectives:

 To design Smart Traffic Management Systems (STMSs) to reduce traffic

congestion, improve air quality, enhance road safety, improve data analytics, and
enhance emergency response.

6
  To provide convenience to the management team by developing a digital system to
make processes regarding Traffic Management easier.

 This system will also control the traffic lights by sensing the traffic density.
2.2.2. Specific Objectives:
 To provide direct access to drivers through a web application system.
 To view the current status of all cars such as Targo numbers, tax or car information.
 To decrease Speed car as to avoid accidents and Jams.

The benefits of implementing a technology-based traffic management system include improved

public transit, cost-effectiveness, real-time data analysis, and others.

2.3. Proposed Project Basic Strategy

The present study was conducted in Ethiopia keeping consideration of the objectives to
assess growth and distribution of roads by area, population, and to explain causes for
regional variations of road development. Secondary data were used for geographical
analysis of Ethiopian roads distribution and inter-regional variations between 1992 and
2009. The analysis of the data reflects that growth of constructed roads was 9.86% per year and
it was 34.69% during 1993 -1994. There was high share of well-connected kebeles (73-
92%) by community roads in Tigray and Afar regional states. However, availability of
roads per 1000 km was higher 96.2 km in Southern Nations Nationalities People Region
and Dire Dhawa. The length of kebele roads by inhabited area and by high accessibility within
2 km from the roads was in southern and western states.

The global traffic management market was valued at USD 35.40 billion in 2021 and is expected
to reach grow at a CAGR of 12.1% during the forecast period.

7
 Figure 1: Traffic Management Market Report Scope

Market size value in 2021 USD 35.40 billion Revenue forecast in 2030 USD 94.89 billion
CAGR 12.1% from 2022 - 2030. Base year 2021 Historical data 2018 - 2020. Forecast period
2022 - 2030 quantitative units Revenue in USD billion and CAGR from 2022 to 2030 Segments
covered By Component, By Application, By Vertical, By Region Regional scope North
America, Europe, Asia Pacific, Latin America, Middle East & Africa. Key Companies are
Accenture PLC, Atkins Group, Cellint, Cisco Systems, Inc., Citilog, Cubic Corporation,
EFKON AG, Esri, FLIR Systems, Huawei, IBM Corporation, Inrix, Inc., Kapsch Trafficcom,
PTV Group, Q Free, Siemens, Swarco, Thales Group

How It Works:

In the meantime, the era of computation and digitalization requires two principal composing
elements – hardware and software. Hardware is the executing subcomponent, and software
serves as the command and analytical center.

Table 1: The Necessary hardware and software for our project

Hardware Software

8
 IoT road sensors: Cloud computing:
 RFID or AIDC  Traffic data platform
 Temperature sensors  Cloud-based traffic control systems
 Geographic information systems
 Air quality sensors  All supporting transportation apps

 Connected CCTV cameras  Big data and predictive analytics

 Connected traffic light systems  AI/ML:
 Computer vision
 Optical character recognition
 Reinforcement learning
 Smart toll gates/electronic road pricing  Location-based services

Traffic Data Flow

1. Data collection

That’s the part where hardware devices like sensors, cameras, GPS trackers, etc., are called
into action. They provide surveillance, traffic count, track speed and time, spot delays or
inadequacies, and mark the parameters of vehicles when needed.

2. Data transmission

By using various secure protocols and pipelines, the collected data is passed to a traffic
management system center for further storage and analysis.

3. Data analysis

During this step, the data is structured, checked for errors, and exposed to the required
logical analysis.

4. Data conversion into intelligent information

9
 After being analyzed, the collected data is converted into relevant information for end-
users. It can represent real-time route changes, the current condition of the road, delays,
accidents, etc.

5. Data transmission to end-users

Logically, the whole point is for us, end-users, to get the needed intelligent information in
any preferred way. Will it be mobile apps, traffic advisory radios, connected wearables, or
automated emails, it’s entirely up to you.

Smart traffic management systems we are developing use integrated sensors like:

 Radio frequency identification (RFID) tags

 Automatic identification and data collection (AIDC) tags

 Temperature sensors

 Air quality sensors

With amount of data that intelligent Transportation Systems (ITS) generate, it’s crucial that the
system integrates cloud computing and edge processing.

Connected Video Monitoring

One of the main technological aspects of smart traffic management systems is video detection
systems with integrated edge processing. Connected video monitoring solutions within the
realm of traffic safety are referred to as traffic incident management systems (TIMs). A TIM
allows city planners to gain real-time insights on regarding traffic conditions and respond to
incidents through HD footage, image detection, and image recognition.

Connected Traffic Light Systems

As opposed to conventional traffic lights, smart traffic light systems integrate the
aforementioned sensor and connected video monitoring technologies to account for intersection
wait times, vehicle speed, and/or pedestrian traffic. Intelligent traffic light systems incorporate
artificial intelligence (AI) and Machine Learning (ML) processes to enable computer vision,
optical character recognition (OCR), and reinforcement learning.

10
Common features of an operating intelligent transport system

Enabling certain technological advances and making them operate together brings essential
benefits to urban infrastructures and their intelligent traffic management. Basically, such
features are one of the major factors that transform an ordinary living area into a smart city.

ITS general features

The principles of IoT (internet of things) technologies embrace the concept of inanimate objects
‘having a conversation’ with each other. Being able to have bi-directional communication, cars,
buses, trucks, trains, etc., may receive real-time triggers for adjusting their traffic behavior.

Moreover, they can identify not only each other but also the constituents of a traffic control
system. Traffic signals, intersection spots, toll booths, and other infrastructure components can
directly connect to the nearby vehicles. By using 5G and artificial intelligence features, wireless
hardware forms its own net of interacting devices.

The so-called ‘internet of vehicles’ already exists in many parts of the world. And the statistics
show that the market share of this sphere is expected to grow, as it brings more safety and
stableness. Also, big data analytics tools help in predictive traffic planning and optimizing
traffic flow.

Smart traffic signal control system

Reacting to loads and timing, smart solutions in signal lights systems can be truly beneficial in
reducing traffic congestion. Relying on the number of vehicles, data from queue detectors and
cameras, smart traffic signals can adjust to the patterns of busyness at intersections and other
crucial road traffic areas.

Starting from an average driver and finishing with logistic enterprises, everyone wins. It saves
time, energy, fuel consumption, and serves as a general optimizer of the interaction between
traffic signals and road users.

ANPR (automatic number plate recognition)

11
Modern surveillance cameras are highly sensitive and far-reaching. Equipped with intelligent
recognition systems, they can do the job in seconds that 50 years ago would take weeks and
months.

Software with optical character recognition capabilities can track stolen or unlicensed vehicles,
identify violators, and register over speeds. Furthermore, infrared lighting allows ANPR to
perform its functions any time of the day or night.

At the same time, the public must always watch for the ethical use of such technologies. For it
not to turn into a ‘big brother’ tool the intelligent traffic management system market to grow to
$19.91 billion by 2028 at a 10.1% CAGR. The demand and increased adoption rate of smart
traffic management solutions can be attributed to the boom of smart city technology. Guide
house Insights reports that there are more than 250 smart city projects globally.

2.4. Project Location

Big Cities such as Addis Ababa (aka Finfinnee), Adama, Dire Dhawa are demanding
transformed transport system that changes the existing service. The transport challenges in these
cities are rampant. Despite the heavy investments and developments being undertaken in the
city, the supply could not much meet the demand. To address the demand of these cities,
socially inclusive, economically affordable, environmentally friendly, and technologically
advanced sustainable transport system is required. In addition, the rationale behind the initiative
is that sustainable and enduring socio-economic development in the city is possible if – and
only if – the transport system provides reliable, safe, comfortable and accessible service.

Currently the road-based public transport environment consists of 3 bus-operating companies (2

public and 1 private) as well as midi-bus and minibus taxis. There is a light rail system, which
is implemented, managed and operated by the National Rail Agency. There is a large share of
pedestrian-based transport, claimed to be responsible for as much as 70% of all trips in the City
of Addis Ababa. 26% of trips are made through public transport and 4% private vehicle.

12
According to TPMO, there are 2.2 million passengers and 3.6 million trips daily in the city
across this modal split.

The initiatives shall increase the accessibility and reliability of the public transport system to all
users. Pedestrians shall have better walking experience and connectivity. It shall create
regulated traffic flow and improved traffic safety. Monitoring and controlling capacity of the
traffic management agency shall be enhanced. The city has an urban transport policy that
promotes the expansion of mass transport systems and non-motorized transport systems with
due regard to pedestrians. It further elaborates the improvement of the traffic management
practices through the introduction of intelligent transportation systems.

The initiative focuses on transforming the provision of reliable and sustainable public transport
systems and creating smoother and safer traffic systems. The city is developing high-standard
mass-transport projects such as 7 BRT lines (of which the B2 corridor is under detailed design
phase), 3 public transport terminals, 3 bus depots, 2 “share the bike” (non-motorized transport)
pilot projects. Furthermore, an additional bus operator is established, running 300 buses, and
shall be increased by 410 more buses in the next five years. The efficiency of the public
transport is planned to be improved with the introduction of dedicated bus lanes.

3. Market and Demand Analysis

As part of our comprehensive planning process for the Smart Traffic Management System
project, we conducted extensive market research to gain insights into the target market's needs
and the competitive landscape. Based on our research, we have developed a sound
understanding of the market trends, business environment, target market, segmentation,
channels of distribution, and competition.

Business Environment: Based on our analysis, there is growing demand globally for
innovative solutions in traffic management. Much of the growth is driven by smart city
initiatives that aim to make city living more efficient and sustainable. Advances in AI,
machine learning, and IoT have created an opportunity to develop sophisticated traffic
management systems.
Target Market and Segmentation: The Smart Traffic Management System's target market
comprises government authorities, local municipalities, and private businesses that have a

13
 vested interest in reducing traffic congestion, optimizing traffic flow and enhancing
transport infrastructure. We have segmented the target market based on its specific size,
infrastructure requirements, and resources available to finance the project.
Channels of Distribution: Based on our market research, we have identified the appropriate
channels of distribution. Our strategy will include direct marketing, partnership networks
with government authorities and local municipalities, and the use of electronic and print
media to reach a broader audience and enhance brand presence and awareness.
Competition: Our market research also revealed that competition in the traffic management
system market is primarily comprised of established companies that have been operating in
this space for a long period. The market is highly competitive, and competitors include tech
giants such as IBM and Siemens, as well as small and medium-sized companies, such as
traffic solutions integrators and software providers.

The result of our market research has informed our strategic planning process for the Smart
Traffic Management System project. We have gained a comprehensive understanding of the
target market, the business environment, segmentation, channels of distribution, and
competition. This comprehensive research assisted us in determining market needs and
requirements and developing effective strategies to ensure that we can compete successfully
and deliver a high-quality traffic management system.

3.1. Annual Data on Supply and Demand

As part of our planning process for the Smart Traffic Management System project, we have
conducted a comprehensive analysis of the market's supply and demand. We have compiled a
set of data that outlines the annual supply and demand trends in the smart traffic management
market.

Supply, on the other hand, has also increased year-on-year, albeit more slowly than demand,
with a compound annual growth rate of over 10 percent. The competition in the market is
tough, and established companies dominate the market. However, with the emerging smart city
initiatives and advancements in technologies such as AI, IoT, and machine learning, the
potential for new entrants is remarkable.

Market costs, Elements of the projected sales programmes and Revenues

14
As we progress through our planning process for the Smart Traffic Management System
project, we have identified a set of projected market costs, sales programs and the potential
revenue that the project may generate.

 Market Costs: The costs associated with the Smart Traffic Management System project
will include development and manufacturing costs, marketing and promotional costs,
overhead costs, labor costs, and other variable and fixed costs. We have developed a
detailed financial plan, including all expenses required for the project, contingency
provisions and risk management strategies to ensure that the project is delivered within
budgetary targets.
 Projected Sales Programmes: Our sales programs will include direct marketing,
leveraging our partnerships with government authorities and local municipalities, and
collaborating with affiliates to promote the project. We also plan to participate in
exposition events and provide demonstrations of the Smart Traffic Management System
at industry conferences, targeting key decision makers in the transportation and smart
city sectors.
 Revenue Potential: Our revenue projections are based on conservative sales figures,
taking into account market demand and competitive factors. We anticipate that the
project will generate revenue from product sales, licensing agreements, maintenance
contracts, and other revenue streams. We aim to achieve profitability in the first year of
commercialization, and our projections forecast that we will see steady revenue growth
in subsequent years.

Our projected market costs, sales programs, and revenue potential for the Smart Traffic
Management System project are aligned with market trends and demand. We have developed a
detailed financial plan that takes into account the costs associated with the project, ensuring that
the project is delivered within budgetary targets. Our sales programs will leverage established
partnerships, affiliations, and direct marketing, and we anticipate steady revenue growth,
making the project commercially successful while enabling us to build a reputation for
developing high-quality, efficient, and innovative smart traffic management systems.

15
 Impacts of raw materials and supplies, location and environment, production program,
plant capacity, and technology

3.2. Raw Materials and Supplies:

Raw materials such as steel, aluminum, copper wires, semiconductors, and other electronic
components are essential in the development of the Smart Traffic Management System. We
have taken steps to identify reputable suppliers who can provide the required materials at a
competitive price without impacting product quality. We will also have a contingency plan in
place to address any global supply chain disruptions or price fluctuations in raw material
markets and ensure we are working within a cost-effective budget.

Location and Environment:

The location of the manufacturing plant and the environment in which it is situated is critical to
the project's success. We have identified a strategically located production facility that has easy
access to the necessary transportation infrastructure, workforce, and other critical resources that
are essential for the project. The production plant will be environmentally friendly, adhere to
local regulations and be developed to operate in line with sustainable development principles.
Our objective is to maximize efficiency while minimizing any negative environmental impact.

Production Program:

The production program is significant in ensuring the Smart Traffic Management System
project is delivered efficiently and effectively. We will develop, test, integrate, and deploy the
system successfully, and we have put in place rigorous testing, quality control measures, and
monitoring systems to ensure that every aspect of the system functions optimally. Our
production program is designed to ensure the project's effective realization within budgetary
targets and specifications.

Plant Capacity:

Plant capacity is instrumental in determining the production cost of the product and its
commercial viability. We have designed the manufacturing plant's capacity to be scalable to
meet the initial demand and projected growth in the future. The various components of the plant
have been assessed, and we routinely monitor output capacity, ensuring that it mirrors demand

16
accurately. We will review plant capacity regularly and implement any required changes to
ensure we are always running the project in the most effective way.

Technology:

The technology we employ in the Smart Traffic Management System project can significantly
impact the product's success. We have employed a variety of cutting-edge technologies, such as
Artificial Intelligence, IoT, and Machine Learning, to develop an innovative traffic
management system. Our technology selection is designed to ensure that our product remains
commercially competitive, while distinguishing ourselves from established and potential
competitors.

The impact of raw materials and supplies, location and environment, production program, plant
capacity, and technology are significant factors that we have considered in our market and
demand analysis for the Smart Traffic Management System project. By managing these facets
effectively, we are confident that we can produce a high-quality, innovative, and commercially
successful product that meets the requirements of the market and our customers.

4. Raw materials and supply study

When we describe the general availability of raw materials, processed industrial materials and
components, factory supplies, spare parts, and supplies for social and external needs we use in
our project:

The development and implementation of a Smart Traffic Management System we have at hand
require various raw materials, processed industrial materials, and components. These include
sensors, cameras, communication devices, software systems, and hardware components such as
servers and data storage devices. The availability of these materials is generally high due to the
widespread use of technology in various industries.

The availability of processed industrial materials and components is generally high due to the
advancements in manufacturing technologies and the increasing demand for such materials in

17
various industries. These materials are produced through various processes such as casting,
forging, machining, welding, and extrusion.

In terms of factory supplies, the production of these materials requires a range of inputs such as
metals, plastics, chemicals, and electronic components. These inputs are widely available in the
global market and can be sourced from various suppliers.

Spare parts for the Smart Traffic Management System are also readily available due to the
standardization of many components used in technology products. This means that replacement
parts can be easily sourced from manufacturers or third-party suppliers.

Supplies for social and external needs such as public safety equipment like traffic cones or
barriers are also widely available. These supplies can be sourced from local or international
suppliers depending on the specific requirements.

The availability of raw materials, processed industrial materials and components, factory
supplies, spare parts, and supplies for social and external needs is generally high due to the
widespread use of technology in various industries. This ensures that the development and
implementation of a Smart Traffic Management System can be carried out efficiently with
minimal supply chain disruptions.

4.1. Annual supply requirements for materials inputs

Here are some general materials that may be required:

Traffic sensors: The number of traffic sensors required would depend on the size of the system.
These sensors detect vehicles and send data to the central system. The annual supply
requirement would depend on how often these sensors need to be replaced.

Cameras: Cameras are used to monitor traffic flow and detect any incidents or accidents. The
annual supply requirement would depend on how many cameras are needed and their lifespan.

Communication equipment: This includes radios, antennas, and other communication devices
that allow different components of the system to communicate with each other. The annual
supply requirement would depend on how often these devices need to be replaced.

18
Power supplies: The Smart Traffic Management System requires a constant power supply to
operate effectively. This includes batteries, solar panels, or other power sources depending on
the location of the system.

Software updates: As technology advances, software updates are necessary to keep the Smart
Traffic Management System up-to-date and functioning properly. The annual supply
requirement would depend on how often these updates are released.

Overall, it is important to consider all material inputs required for a Smart Traffic Management
System when planning for its implementation and maintenance in order to ensure its
effectiveness in managing traffic flow and reducing congestion on roads.

4.2. Availability of critical inputs

The availability of critical inputs for a Smart Traffic Management System includes various
components such as sensors, cameras, communication networks, and data processing systems.

Sensors: are essential for collecting real-time traffic data such as vehicle speed, volume, and
occupancy. These sensors can be installed on roads, highways, and intersections to monitor
traffic flow. The availability of these sensors is crucial for the system to function effectively.

Cameras: are another critical input for a Smart Traffic Management System. They are used to
capture images and videos of traffic conditions in real-time. These cameras can be mounted on
traffic signals or poles to provide a comprehensive view of the road network. The availability of
these cameras is essential for monitoring traffic congestion and accidents.

Communication networks: play a vital role in transmitting data from sensors and cameras to the
central control system. These networks can be wired or wireless depending on the location and
requirements of the system. The availability of reliable communication networks is crucial for
ensuring that data is transmitted accurately and in real-time.

19
Data processing systems: are responsible for analyzing the data collected from sensors and
cameras to provide insights into traffic patterns and trends. These systems use algorithms and
machine learning techniques to identify congestion hotspots, predict travel times, and optimize
traffic flow. The availability of these systems is critical for making informed decisions about
traffic management strategies.

In conclusion, the availability of critical inputs such as sensors, cameras, communication

networks, and data processing systems is essential for the effective functioning of a Smart
Traffic Management System. Without these inputs, it would be challenging to monitor traffic
conditions in real time and implement effective management strategies.

5. Location, site and environment

Let’s Identify and describe the location and plant site selected including ecological and
environmental impact, socioeconomic policies, and infrastructural conditions for our proposed
project:

The Smart Traffic Management System will be implemented in a densely populated urban area
with high traffic congestion. In the context of our country, cities such as Addis Ababa (aka
Finfinnee), Adama, Dire Dhawa, Bahir Dar and Mekele are known for high traffic congestion.

5.1. Ecological and Environmental Impact:

The implementation of the Smart Traffic Management System will have a positive impact on
the environment by reducing traffic congestion and emissions. The system will use real-time
data to optimize traffic flow, reducing idling time and fuel consumption. This will result in
lower carbon emissions and improved air quality.

20
 Consideration of ecological and environment impact, socioeconomic policies, and
infrastructure

When selecting a location and plant for a Smart Traffic Management System project, several
factors need be considered such as ecological and environment impact, socioeconomic policies,
and infrastructure.

The factors we would consider when selecting a location and plant for the project:

Ecological and environmental impact: We would need to identify any potential

environmental impact of the plant and ensure that the location is eco-friendly. We aim to
reduce our carbon footprint and look out for ways the plant can effectively utilize its
waste management systems.
Socioeconomic policies: We would evaluate the socioeconomic policies of the region to
ensure that they are supportive of the Smart Traffic Management System project.
Ideally, our project positively affects people within the region and aligns with local
policies.
Infrastructure: We would evaluate the infrastructure in place in the region and assess if
it is of sufficient quality to cater for the needs of the Smart Traffic Management System
project. This would include evaluating the availability of reliable power supply,
transportation links and communication networks.
Availability of trained workforce: We would need to assess if the region has a sufficient
supply of skilled labor that could be hired to work on the project. By ensuring that we
hire sufficient highly-skilled personnel, we can ensure the success of the project.
Access to resources: We would also need to consider if the site has access to resources
that would aid in the production of the Smart Traffic Management System. This would
include evaluating the cost and accessibility of raw materials such as sensors and other
equipment.

Considering these factors and making sure our plant location aligns with our social, economic,
and environmental values, we can ensure the success of the Smart Traffic Management System
project.

Critical Aspects and Justification of Choice of Location

21
When it comes to justifying the choice of location and site for a Smart Traffic Management
System, several critical factors come into play. Here are some aspects we should consider when
evaluating the location and site for such a project:

 Accessibility: The location should be easily accessible to major roads, highways, and
other means of transportation for the effective management of traffic.
 Availability of infrastructure: Essential utilities such as water, electricity, and
telecommunications should be available on-site for effective operations of the Smart
Traffic Management System
 Proximity to transportation hubs: The location should be close to transportation hubs,
such as airports and train stations, since they serve as transportation intersections for
passengers.
 Customer demographics: It is essential to consider the demographics of the region when
choosing a site for the smart traffic management system. This information helps us
analyze the traffic patterns and design more efficient solutions.

Considering these aspects, we recommend that the Smart Traffic Management System be
located in a central area within the city. This location will be easily accessible to major roads,
highways, and other transportation links. Additionally, it will be within a reasonable distance of
many transportation hubs, businesses, and residential areas, making it an excellent option for its
purpose.

Significance of Costs Related to Location and Site

When it comes to identifying the significant costs associated with the location and site of a
Smart Traffic Management System project, there are a few critical factors we need to consider.
Some of these significant costs include:

 Land Costs: This cost can vary significantly based on the location and the size of the
property. We will need to budget for this cost in our overall project budget.
 Infrastructure Costs: We will need to budget for essential utilities such as water,
electricity, and telecommunications, which can be a significant expense.

22
  Permitting and Regulatory Costs: These costs include fees for obtaining necessary
permits, licenses, and regulatory compliance, and they can vary based on the location.
 Construction and Installation Costs: This cost includes building and installation
expenses such as the construction of a control center, installing necessary hardware and
software, and the setup of a communication network.
 Maintenance and Operating Costs: Once the system is up and running, it will also need
to be maintained and operated, including regular maintenance and upgrades.

It's important to keep in mind that these costs will vary based on the location and site. However,
we need to carefully assess these costs in our planning process. By doing so, we can budget
adequately to avoid delays and keep within our overall budget. Therefore, we must work with
experts to accurately identify all the costs associated with the project's location and site.

6. Engineering and Technology

6.1. Production Programs:
The production program for the Smart Traffic Management System is an essential aspect of the
project's success. It is comprised of several distinct phases designed to ensure optimal
efficiency, effectiveness, and quality. The first phase is the Design stage. During this phase, our
expert team will design the architecture, software, and hardware components of the system
while taking into account the market and demand analysis study conducted earlier. The team
will leverage the latest technological advancements in AI, machine learning, and IoT to create
an innovative traffic management system.
Production Program Phases - The production program for the "Smart Traffic Management
System" project consists of several phases. Each phase plays a critical role in the successful
implementation of the system.
Phase 1: System Design - During this phase, we defined technical requirements, and a detailed
system design was developed. The software and hardware design will be established based on
the requirements, and programming languages, development frameworks, and database

23
management systems will be selected. The database design will address the system's scalability,
reliability, and resilience.

Phase 2: Development and Testing - The second phase involves the actual development of the
system. At this stage, we developed the software components, database management systems,
and hardware implementation and we tested them to ensure that they meet the system's
technical specifics. The user interface (UI) design will be adapted to the system requirements to
make it more practical. Development and testing phases will happen concurrently, allowing for
faster feedback and error identification.

Phase 3: System Integration - Next, the integration of all components into a unified system will
take place. The system integration phase is crucial and requires rigorous testing and validation
of the system's functionality, including testing of system performance under significant data
loads.

Phase 4: Deployment – In the deployment phase, we participated in the installation of the

system into a live traffic environment. Integration with available data sources will be tested
again, and system settings adjusted to fit real-world scenarios. In this stage, the system will be
meticulously tested to guarantee that there are no blind spots.

Phase 5: System Maintenance - The final phase is the system maintenance stage. At this stage,
we focused on maintaining the system's reliability, security, and responsiveness. We also
applied regular maintenance to ensure the system's optimal performance and to address any
system failures or blind spots that may arise at any point during the system's lifetime.

The production program for the "Smart Traffic Management System" project consists of several
critical phases, including system design, development and testing, system integration,
deployment, and system maintenance. Each phase is vital to the system's successful
implementation, operation, and maintenance. Careful monitoring, quality control, and timely
updates will be the key to ensuring a system that offers efficient and effective traffic
management.

24
 6.2. Plant Capacity:
The manufacturing plant is a crucial component of the Smart Traffic Management System
project, designed to meet the system's expected demand. We have carefully considered plant
capacity and scalability to ensure that we can meet the project's objectives effectively and
efficiently. The plant's design will encompass various types of capacity, depending on the
project's needs, such as output capacity and design capacity.

The initial stage of the project will be a pilot phase deployed in select areas of the city, which
will provide insights into the project's initial demand. This phase will inform plant capacity,
which will be adjusted to ensure the project reaches its targets. The pilot phase's successful
completion will lead to the commercial launch of the Smart Traffic Management System in
designated locations across the city.

The manufacturing plant will consist of assembly lines manned by skilled technicians and
engineers, and the production process will leverage industry-standard quality control measures
to ensure efficiency and quality production. We will encourage employee training and invest in
maintenance to ensure that the plant and Smart Traffic Management System run optimally
throughout the project's duration.

Our plant capacity is designed to meet initial demand and will be scalable to accommodate
future growth and demand. Continuous improvement is a priority, and we will invest in
research and development and leverage emerging technologies to ensure that the traffic
management system continues to grow and evolve with changing needs.
Types of plant capacity
 Design Capacity: This refers to the maximum output capacity that a plant can produce for a
particular product over a given period. However, since the demand is not consistent, the
plant may not always operate at full capacity.
 Effective Capacity: This refers to the plant's ability to produce output based on its actual
level of productivity.

25
 Actual Capacity: This is the plant's current output level, which may be lower than the
capacity it was designed to produce. Factors such as labor, equipment availability, and
product demand may affect actual capacity.
The manufacturing plant and plant capacity are critical to the Smart Traffic Management
System project's success, designed to meet the expected demand and produce a quality traffic
management system. Our project team will continuously monitor equipment and product
demand to optimize the plant's design and ensure a consistently high level of output and quality.

Technology and Engineering Requirements

Smart traffic management systems rely on a variety of technologies and engineering
requirements to effectively manage and optimize traffic flow in cities and urban areas. Some of
the key technologies include sensors, cameras, and other types of hardware that can capture and
process data in real time. We use this data to analyze traffic patterns, identify congestion points,
and make real-time adjustments to traffic signals and other traffic management systems.

Other important aspects of smart traffic management systems we use are artificial intelligence
(AI), machine learning algorithms and the Internet of Things (IoT). We use these technologies
to predict traffic patterns and adjust traffic signals and other systems accordingly to prevent
congestion and improve traffic flow.

Artificial Intelligence (AI): AI is one of the critical technologies we require to build the Smart
Traffic Management System. This technology enables our traffic management system to learn
from different data sources and make informed traffic management decisions in real-time time.
The AI algorithms will be trained on vast amounts of historical traffic data, enabling the system
to make accurate predictions and adjustments to the traffic flow in real time.

Machine Learning (ML): Another essential technology we use in the design and development
of the Smart Traffic Management System is Machine Learning. ML will enable our system to
detect patterns in traffic and learn from them to make informed decisions.

26
Internet of Things (IoT): The IoT leverages a vast network of devices and sensors to gather
data from traffic cameras, traffic sensors, and other sources. We use data gathered through the
IoT to improve the traffic management system's predictive capabilities.
Traffic Sensors: Traffic sensors play another crucial role in information and while we develop
the devices we integrated the sensors into those devices.

Engineering requirements:
Engineering requirements for smart traffic management systems include the development and
integration of software and hardware systems, as well as the design and implementation of
communication networks to support data transmission and processing. There is also a need for
effective data analysis and visualization tools to help traffic management professionals make
informed decisions about how to optimize traffic flow.

The development and implementation of smart traffic management systems require a

combination of technological expertise, engineering knowledge, and data analysis skills. By
leveraging these resources, cities and urban areas can improve traffic flow, reduce congestion
and emissions, and create a more efficient and sustainable transportation network for residents
and visitors alike.

Significance of Technology and Engineering in the Effectiveness of the Project

Technology and engineering play a critical role in effectively implementing and operating smart
traffic management systems. These systems rely on a complex network of sensors, cameras, AI
algorithms, and other hardware and software components to collect and process data, analyze
traffic patterns, and make real-time adjustments to traffic signals and other systems. Without the
right technological infrastructure and engineering expertise, smart traffic management systems
would not be able to operate effectively or deliver the significant benefits that they promise.

One of the most significant benefits we expect after developing smart traffic management
systems is improved traffic flow and reduced congestion. By using real-time data to adjust

27
traffic signals and optimize traffic patterns, these systems can significantly reduce travel time,
improve safety, and decrease emissions from idling vehicles. In addition to these benefits, smart
traffic management systems can also provide valuable insights for transportation planners and
urban designers, helping to inform decisions about infrastructure investments, transit planning,
and other urban development initiatives.

However, realizing these benefits requires a deep understanding of the underlying technology
and engineering requirements. For example, while designing and implementing a network of
sensors and cameras we require careful consideration of placement, connectivity, and data
processing capabilities. Similarly, we carefully develop and train AI and machine learning
algorithms to accurately predict traffic patterns and optimize traffic flow. Engineers must also
consider issues such as cybersecurity threats, scalability, and interoperability with existing
transportation systems.

In short, the effective implementation of smart traffic management systems requires a multi-
disciplinary approach that brings together expertise in technology, engineering, data analysis,
and transportation planning. By leveraging these skills and resources, cities and urban areas can
create a more sustainable, efficient, and livable transportation network for everyone.

Means of Acquiring Appropriate Technology for the Project

For the implementation of a Smart Traffic Management System, we require the acquisition of
appropriate technology that can effectively manage and control traffic flow. We have got
several means to acquire such technology, including:

1. Research and Development: This involves that we have conducted extensive research
on existing traffic management systems and developing new technologies that can
improve upon them. In this approach we invested a significant time and resources that
results in the creation of innovative solutions tailored to the project’s specific needs.

28
 2. Collaboration with Technology Providers: At this stage, we collaborate with
technology providers who specialize in traffic management systems that can provide
access to cutting-edge technologies that have already been developed. This approach
allows us for faster implementation and reduction of the risk associated with developing
new technologies from scratch.

3. Open Source Technologies: Open source technologies provide access to a wide range
of software and hardware solutions that can be customized to meet the specific needs of
the project. We use this approach because it is cost-effective and allows for greater
flexibility in terms of customization.

4. Public-Private Partnerships: Public-private partnerships involve collaboration

between government agencies and private companies to develop and implement traffic
management systems. This approach provides access to both public-sector expertise and
private-sector innovation, resulting in more effective solutions.

In conclusion, in acquiring appropriate technology for a Smart Traffic Management System we

consider of various means, including research and development, collaboration with technology
providers, open-source technologies, and public-private partnerships. We understand that each
approach has its advantages and disadvantages, but we ultimately made a choice depending on
various factors such as budget, timeline, and specific project requirements.
Ways of Getting Know-how to Use Technology
In developing expertise in the use of technology for smart traffic management systems, we
require a range of different approaches, including training programs, academic research, hands-
on experience, and collaboration with industry partners. Here are some of the key ways to gain
knowledge about using technology for smart traffic management we develop:

1) Training Programs - One of the most common ways to acquire technology know-how is
through training programs offered by technology vendors, engineering organizations, and
academic institutions. These programs can provide valuable instruction on topics such as

29
 computer vision, machine learning, data analysis, and software development, which are all
critical components of smart traffic management systems we develop.

2) Academic research - Academic research can also play an important role in developing
expertise in traffic management technology. Researchers can help identify new methods for
collecting and analyzing data, develop new algorithms for optimizing traffic flow, and
experiment with new hardware and software systems to determine their efficacy.

3) Hands-on experience - Gaining hands-on experience with technology systems is another

effective way to acquire knowledge in our smart traffic management. Engineers and
transportation planners can learn by doing, working with technology vendors or system
integrators to design, develop, and test new systems in real-world environments.

4) Industry partnerships - Another way to acquire knowledge about smart traffic

management technology is through partnerships with industry organizations and technology
providers. These partnerships can provide access to the latest technology systems, hardware,
and software components, and can also help identify emerging trends and best practices in
the field.

Overall, developing expertise in smart traffic management technology requires a multifaceted

approach that includes training, research, hands-on experience, and collaboration with industry
partners. By investing in these activities, cities and urban areas can create a more efficient,
sustainable, and livable transportation network that benefits everyone and we are happy use
project implemented!

Technology and Engineering-Related Problems of the Project

While our smart traffic management systems have the potential to significantly improve traffic
flow, reduce congestion, and enhance safety, several technological and engineering-related
problems can arise during their design, development, implementation, and operation. Here are
some of the most common challenges we face that can complicate the deployment of a smart
traffic management system:

30
a. Hardware and software compatibility - Smart traffic management systems
typically rely on a combination of hardware and software components, and
ensuring compatibility between these systems can be difficult. For example,
different types of sensors may produce data in different formats, and software
updates can create compatibility issues. These challenges can lead to system
downtime and reduced performance, as well as increased costs due to the need for
upgrades or replacement of components.

a. Data quality and accuracy - Smart traffic management systems rely on high-
quality and accurate data to make predictions and optimize traffic flow.
However, data errors, discrepancies, and missing data can create problems that
can compromise the effectiveness of the system. For instance, inaccuracies in
real-time traffic reports may cause traffic lights to turn red when they should be
green, creating additional congestion. Improving the quality and accuracy of data
requires close collaboration between transportation planners, engineers, and data
analysts.

b. Cybersecurity threats – Our project: smart traffic management systems are

vulnerable to cybersecurity threats such as hacking, malware attacks, and other
forms of malicious activity. As the systems rely heavily on data transmission and
processing, it is critical to implement proper security measures to protect against
cyber-attacks. This includes measures such as encryption, multi-factor
authentication and firewalls, along with regular software updates and employee
training to promote good cybersecurity practices.

c. System scalability - Smart traffic management systems that we develop meet

the need for scalability, as traffic volumes and urban populations continue to
grow. We understand that failing to design for scalability can lead to reduced
system performance and poor overall system performance. This can result in

31
 traffic congestion and decreased user experience, reversing the intended benefits
of the system.

d. Integration with existing systems – After we develop the smart traffic

management systems, we integrate effectively with other transportation systems,
such as transit, parking, and driver information systems. We believe that failing
to integrate these systems effectively can lead to reduced system performance
and poor user experience. For example, if a transit system is not integrated with
the smart traffic management system, buses may become delayed due to traffic
congestion, making it difficult for riders to plan their trips.

Overall, in the development and deployment of smart traffic management systems, we require
significant technological and engineering expertise and require careful consideration of a range
of factors including hardware and software compatibility, data quality and accuracy,
cybersecurity threats, system scalability, and integration with other transportation systems. We
recommend that addressing these challenges is critical to the effective operation of a smart
traffic management system and the benefits it can provide to cities and urban areas.

1. The Organization and overhead costs

We know that the organization and overhead costs of the Smart Traffic Management System
project are critical components that must be effectively managed to ensure the project's success.
The organization of the project team, project management methodologies, and ensuring cost-
effective solutions are utilized to manage overhead costs are some of the key components in this
area. While we design our project, overhead costs can quickly drain the project's budget. This is
the most challenge we face, and the project team take active measures again and again to
manage these costs to ensure that the project is delivered within budget and meets the project

32
objectives efficiently and effectively. Our project team work to develop cost-effective solutions
while ensuring that the project is delivered with the highest quality standards.

7.1. Plant Organization and Management

Effective organization and management are critical to the successful implementation of the
Smart Traffic Management System. Our project team are responsible for the management and
coordination of critical activities throughout the project development lifecycle, such as
planning, design, deployment, and operation. We ensure that a robust organization and
management processes are in place to ensure the project objectives are met efficiently and to the
highest quality standards.

Our project team comprise professionals with diverse skills and expertise across various fields,
including ECE, CSE and other. The team are responsible for developing the project scope,
budget, and timeline and defining the requirements and constraints of the Smart Traffic
Management System. The team also work collaboratively to develop a comprehensive project
plan and project schedule that considers all input data and factors that may impact project
delivery.

General management of the enterprise

We know that the general management of an enterprise that implements a smart traffic
management system requires a range of skills and expertise across various functional areas.
Effective management involves developing and implementing policies and processes that
facilitate the successful deployment of the system while ensuring that it generates a positive
return on investment. Here are some of the key aspects of general management in the context of
a smart traffic management enterprise after we implement:

a. Strategic planning – We develop a strategic plan for the smart traffic management
system that aligns with the objectives of the organization is critical to its success. In plan
we include clear goals, timelines, and milestones and we communicate to all
stakeholders.

33
 b. Resource management – In appropriate allocation and management of resources we
including consider financial, human resources, software, hardware and infrastructure for
operating the smart traffic management system. This involves developing and following
a budget and monitoring progress to ensure effective use of resources we are working
with.
c. Project management - Managing the project to implement the smart traffic
management system involves defining the scope of work, setting timelines and
schedules, controlling project costs, and assessing risks.
d. Partner and stakeholder engagement – we also engage with partners such as
technology vendors, contractors, academia, and regulators to ensure the smooth
execution of the project. Similarly, engaging stakeholders like transportation agencies,
city planners, traders, and the general public through appropriate channels such as
public forums and surveys can be beneficial.
e. Monitoring and evaluation - Measurement criteria must be developed to gauge the
success of the smart traffic management system and progress toward its goals. Metrics
can include traffic flow, number of accidents, and reductions in emissions. Regular
evaluation of the system, benchmarking against industry standards, and opportunities for
continuous improvement are important to ensure that the enterprise is achieving its
goals.

The successful deployment and operation of a smart traffic management system require
effective general management that aligns with the goals of the enterprise. Effective strategic
planning and coordination among all stakeholders, appropriate resource management, sound
project management practices, effective stakeholder engagement, and ongoing monitoring and
evaluation are all key factors in ensuring that the system delivers the desired benefits and
provides a positive return on investment.

Finance, Financial Control and Accounting

Finance, financial control, and accounting are critical aspects of the successful implementation
of a smart traffic management system. Here are some of the ways that these areas relate to the
topic:

34
1) Finance: In the context of a smart traffic management system, finance involves managing
the financial resources required to design, develop, and deploy the system. This includes
identifying the costs associated with hardware and software, acquiring the necessary
licenses, and paying for the salaries and benefits of the personnel involved in deploying and
maintaining the system. Additionally, finance involves identifying potential funding
sources, such as grants, loans, or private investors, that can help cover the costs associated
with the smart traffic management system.
2) Financial control: Financial control is critical in ensuring that the costs associated with the
smart traffic management system are kept under control and that the project stays within
budget. This involves developing a financial plan, establishing financial controls, and
monitoring expenditures to ensure that costs do not exceed the budget. Financial controls
may include establishing procurement policies, implementing financial reporting systems,
and conducting regular audits.
3) Accounting: Accounting involves keeping accurate records of the financial transactions
related to the smart traffic management system. This may include recording expenses and
revenues, preparing financial statements, and developing budgets and forecasts. Accounting
also involves ensuring compliance with regulatory requirements and accounting standards.

Overall, effective management of finance, financial control, and accounting is essential to the
successful implementation of a smart traffic management system. By carefully managing
financial resources, implementing strong financial controls, and maintaining accurate
accounting records, cities and urban areas can ensure that the smart traffic management system
is delivered on time, within budget, and delivers the desired benefits.

Personal Administration

Personal administration is an essential aspect of managing the personnel involved in the

development, deployment, and operation of a smart traffic management system we develop.
Some of the ways we administer personal administration are:

35
A. Recruitment and hiring: For the successful deployment of a smart traffic management
system, we require hiring personnel with the necessary skills and expertise to design,
implement, and operate the system. Personal administration we employ involves developing
job descriptions, recruiting candidates, and conducting interviews to identify the best
candidates for our job.
B. Training and development: Once we hire personnel, we provide personal administration
that involves giving them with the necessary training and development opportunities to
ensure they have the skills and knowledge required to perform their job effectively. We
include technical training in areas such as software development, artificial intelligence, and
data analytics as well as soft skills such as communication and teamwork.
C. Performance management: In the personal administration, we also manage the
performance of personnel involved in deploying and operating the smart traffic management
system. This includes setting goals and objectives, providing regular feedback, and
conducting performance evaluations to ensure that personnel are meeting our expectations.
D. Compensation and benefits: Compensation and benefits are key areas of personal
administration that help us attract and retain talented personnel. Our project, after
implemented, develop a competitive compensation package that includes salary, bonuses,
and benefits such as healthcare, retirement plans, and time off.
E. Employee engagement: Engaging personnel involved in deploying and operating the smart
traffic management system is critical to its success. Therefore, we involve personal
administration to develop strategies to build a positive work environment that encourages
cooperation, teamwork, and innovation.

Effective personal administration is essential to the successful deployment and operation of a

smart traffic management system. By recruiting and hiring the right personnel, providing them
with adequate training and development, managing their performance, offering competitive
compensation and benefits, and engaging them in the project, we ensure that the system is
delivered on time, within budget, and achieves the desired benefits.

Marketing Sales and Distribution

36
Marketing, sales, and distribution are critical aspects of the successful implementation of our
project. Here are some of the ways that these areas relate to the topic:

a) Marketing: Marketing is essential to raise awareness of the smart traffic management

system among potential customers, stakeholders, and investors. This involves
positioning the system as a solution to the challenges of traffic congestion, safety, and
environmental impact. Effective marketing requires developing a marketing plan that
includes identifying the target audience, developing messaging, and leveraging
channels such as social media, industry events, and press releases to reach potential
customers.
b) Sales: Sales involve engaging with potential customers to promote the benefits of the
smart traffic management system and secure contracts for the deployment of the
system. This could involve meeting with city planners, transportation agencies, and
other governmental bodies to present the benefits, specifications, and pricing of the
system. Sales efforts need to be strategic and well-planned to ensure that potential
customers are aware of the benefits of the system and that they understand the value
proposition.
c) Distribution: Distribution involves ensuring that the smart traffic management system
is delivered and installed correctly and on time. This could involve coordinating with
various stakeholders such as engineering teams, transportation planners, and urban
designers to ensure that the appropriate infrastructure is in place. The distribution also
involves ensuring proper maintenance and support are delivered post-implementation.

Effective marketing, sales, and distribution are essential to the successful implementation and
operation of a smart traffic management system. By clearly positioning and promoting the
benefits of the system to potential customers, securing contracts for deployment, and ensuring
that it is delivered and installed on time and within budget, we believe cities and urban areas
can reap the benefits of improved traffic flow, safety, and efficiency.

Supplies, Transport and Storage

37
Supplies, transport, and storage are essential aspects we use in the successful implementation of
our project. Here are some of the ways that these areas relate to the topic:

i. Supplies: Supplies are required to deploy and operate the smart traffic management
system. Hardware devices we consume are sensors, cameras, displays, and
communication equipment as well as we develop software such as traffic management
systems and analysis tools. The effective supply management of our project identify the
necessary supplies, procuring them from appropriate sources, managing costs, and
ensuring that they are available when needed.
ii. Transport: Transportation is essential to move supplies and personnel involved in
deploying and operating the smart traffic management system. At this stage, we
transport supplies from the supplier to the deployment site, move equipment and
personnel between multiple locations, and transport personnel to and from the
deployment site. Effective transport management our team are involved in selecting the
appropriate mode of transport, developing transport schedules that minimize costs and
delays, and ensuring that all transportation activities are conducted safely and
efficiently.
iii. Storage: Storage is essential to ensure that supplies are available when they are needed
and that they are protected from damage or theft. Here, we are involved in storing
supplies at a central warehouse and shipping them to individual deployment sites or
storing supplies on-site. Also we are involved in selecting appropriate storage locations,
developing inventory control systems that ensure that supplies are tracked, and ensuring
that storage facilities are safe and secure.

Generally, effective supplies, transport, and storage management are essential to the successful
implementation and operation of the project at our hand. By managing these aspects carefully,
cities and urban areas can ensure that the necessary supplies are available when they are
needed, that they are transported safely and efficiently, and that they are stored securely. We
there to implement helping those cities and urban areas which are in need with our project.

38
Production

Production is a critical aspect of developing and implementing a smart traffic management

system. Here are some of the ways that production relates to the topic:

a. Design and development: To develop a smart traffic management system, we require

designing and developing hardware and software components that can communicate
with one another and integrate with existing infrastructure. In developing process, we
involve identifying the specifications, performing prototyping, and conducting testing to
ensure that the system functions as intended.
b. System integration: After we develop the components of the system, we integrate
them into a functional smart traffic management system for the purpose of production.
We also perform testing and refining the various components to ensure work together
seamlessly.
c. Installation: To Install a smart traffic management system, we require coordination
with various stakeholders, including city planners, transportation agencies, and
contractors, to ensure that the infrastructure is in place to support the system. This could
include installing sensors, cameras, and other hardware components, as well as
configuring software settings to optimize performance.
d. Quality assurance and control: At this stage, we ensure that the smart traffic
management system meets rigorous quality standards. We use verification and
validation activities such as testing, system simulation, and design reviews to ensure that
the system is reliable, safe and secure.
e. Maintenance and support: Once we install the smart traffic management system, we
provide ongoing maintenance and support to ensure that it continues to function
effectively. Mostly we do that regular software updates, training personnel to support
the system, and providing troubleshooting and help desk support to address any issues
that arise.

To summarize, in the production we developing and implement a smart traffic management

system. By designing and developing effective components, integrating them into a functional
system, installing the system properly, ensuring quality and providing ongoing maintenance and

39
support, we successfully deliver a system that can improve traffic flow, reduce congestion and
enhance safety.

Other function

Other functions are critical to the successful implementation and operation of a Smart Traffic
Management System in addition to those already mentioned.

Here are some other functions:

1. Legal and regulatory compliance: Legal and regulatory compliance is critical to the
success of the Smart Traffic Management System. Municipalities and urban areas must
comply with a wide range of laws, regulations, and building codes to implement our
proposed project, which govern the deployment, operation, and maintenance of the
system. This requires close collaboration with legal teams to ensure that all requirements
are met.
2. Health and safety: In this case we rigorously develop safety protocols to protect
personnel working near busy roads or conduct vulnerability assessments to minimize the
risk of cybersecurity breaches.
3. Quality control: Quality control is essential in ensuring that the Smart Traffic
Management System is deployed and operates as expected. To ensure it, we entail
develop and implement rigorous testing and quality control procedures to identify and
resolve any issues before the system goes live.
4. Risk management: Risk management is critical to the success of the Smart Traffic
Management System. Cities and urban areas must identify and assess potential risks
associated with the system, such as failure of hardware or software, integration issues,
and delays and develop mitigation strategies to minimize any adverse effects to
effectively benefit from our proposed project.
5. Innovation: Innovation is vital to the success of a Smart Traffic Management System.
Cities and urban areas must stay abreast with recent technological tools and trends to
ensure that they can stay one step ahead of the challenges associated with ever-growing
urbanization.

40
The effective management of these functions is essential to the successful deployment,
operation, and maintenance of a Smart Traffic Management System. By carefully managing
these areas, cities and urban areas can ensure that the system is deployed on time, within
budget, and delivers the expected benefits to the community.

The organizational Structure

Here are smart Traffic Management System organizational structure to achieve its objectives
and delivers the desired benefits:

 Executive leadership team: in our project, executive leadership team, which comprises
senior executives and managers, is responsible for overall strategic direction, decision-
making and ensuring the system's objectives are delivered.
 Project management team: in our project, this team is responsible for managing the
project to deploy the Smart Traffic Management System. They are responsible for setting
timelines, establishing milestones, managing budgets and liaising with stakeholders. They
manage communication with internal and external project stakeholders and monitor the
project's progress to ensure its within approved plans.
 Technical team: The technical team, in our project, typically comprises electrical,
electronics and software engineers who are responsible for designing, developing, testing,
and deploying the Smart Traffic Management System hardware and software.
 Operations team: The operations team, in our project, is responsible for the day-to-day
operation and maintenance of the Smart Traffic Management System once it is deployed.
They monitor system performance, troubleshoot issues, and implement upgrades.
 Sales and marketing team: This team is responsible for promoting the Smart Traffic
Management System, securing contracts, and identifying potential revenue streams. They
may engage with city planners, transportation authorities or other government officials to
present the benefits and features of the system and secure contracts for deployment.
 Finance and Resource management: This function is responsible for managing financial
resources, establishing budgets, and tracking expenses. It designs operational and financial
KPIs reports for top management within the organization. They identify funding sources

41
 and ensure that the necessary financial resources are available to support the Smart Traffic
Management System.

The organizational structure of a Smart Traffic Management System requires clear definitions
of roles and responsibilities for each team member as we have discussed here. By developing an
effective organizational structure, cities and urban areas can ensure that the Smart Traffic
Management System is planned, designed, deployed, and operated efficiently and effectively.

Socioeconomic Policies:

The Smart Traffic Management System will have a significant impact on the socioeconomic
conditions of a country. The system will improve transportation efficiency, reducing travel time
for commuters and increasing productivity. This will have a positive impact on the economy by
increasing business productivity and reducing transportation costs.

Infrastructural Conditions:

To implement the Smart Traffic Management System, we require significant infrastructural

support. The system requires an extensive network of sensors, cameras, and communication
infrastructure to collect real-time data and communicate with traffic signals. These devices are
very crucial in our project implementation.

In conclusion, the implementation of the Smart Traffic Management System in big cities of
Ethiopia has significant potential to improve transportation efficiency, reduce emissions, and
improve socioeconomic conditions. However, it requires careful consideration of ecological
impacts, socioeconomic policies, and infrastructural conditions to ensure successful
implementation.

Critical aspects and justification choice of location and site

We understand that Smart Traffic Management System is a modern approach to managing

traffic flow and reducing congestion on roads. The critical aspects of this system include the use

42
of advanced technologies such as sensors, cameras, and artificial intelligence to monitor traffic
conditions in real time. This information is then used to optimize traffic flow by adjusting
signal timings, rerouting vehicles, and providing real-time information to drivers.

Another critical aspect that needs to be considered is the availability of data. A Smart Traffic
Management System relies heavily on data from various sources such as traffic sensors, GPS
devices, and social media platforms. Therefore, the location should have reliable data sources
that can provide accurate and timely information.

The site for implementing a Smart Traffic Management System our project should also be
chosen carefully. It should be easily accessible for maintenance purposes and have adequate
security measures in place to prevent vandalism or theft of equipment. Additionally, the site
should have sufficient space for installing equipment such as cameras, sensors, and control
center.

In conclusion, the critical aspects of implementing a Smart Traffic Management System include
advanced technologies for monitoring traffic conditions in real-time, choosing a location with
high traffic volume and congestion along with adequate infrastructure to support the installation
of sensors and cameras while ensuring reliable data sources are available. The site must also be
easily accessible for maintenance purposes with sufficient space for installing equipment while
having adequate security measures in place to prevent vandalism or theft of equipment.

Significant costs relating to location and site

To implement Smart Traffic Management System, we include significant costs related to

location and site. Some of the major costs we consider in our project are:

Infrastructure Costs: Our system requires a robust infrastructure that includes sensors, cameras,
communication networks, and data storage facilities. The cost of installing and maintaining this
infrastructure can be substantial.

Site Preparation Costs: The installation of our system requires site preparation activities such as
excavation, trenching, and laying cables. These activities can add to the overall cost of the
project.

43
Power Supply Costs: Our system requires a reliable power supply to operate effectively. This
may involve installing backup power generators or solar panels to ensure uninterrupted power
supply.

Maintenance Costs: Our system requires regular maintenance to ensure that it operates
efficiently and effectively. This includes cleaning sensors and cameras, replacing faulty
equipment, and upgrading software.

Training Costs: The personnel responsible for operating and maintaining the system require
specialized training to ensure they can perform their duties effectively. This training can be
costly depending on the level of expertise required.

Regulatory Compliance Costs: The installation of the system may require compliance with
various regulations related to data privacy, security, and environmental impact assessment.
These compliance costs can add significantly to the overall project cost.

Overall, to implement the Smart Traffic Management System, we include significant costs
related to location and site preparation activities, infrastructure installation and maintenance,
power supply provision, personnel training, and regulatory compliance requirements among
others.

7.2. Overhead Costs

When it comes to the organization and overhead costs required for a Smart Traffic Management
System project, there are several types of factory overhead costs that we as a company may
need to consider.

Here are a few examples of different types of factory overhead costs that may be applicable to
our project:

 Facility Costs: This includes rent or mortgage payments for office space, rental
payments for equipment used in the project, and utilities such as electricity, water, and
internet.
 Labor Costs: This includes wages, salaries, and benefits for employees involved in the
project, such as project managers, engineers, and support staff.

44
  Materials and Supplies Costs: This includes costs associated with purchasing the raw
materials and supplies required to build the Smart Traffic Management System.
 Maintenance Costs: This includes costs associated with maintaining the Smart Traffic
Management System, such as repair and replacement of parts, updating software, and
ongoing technical support.

To minimize the overhead costs of the project, we may need to consider ways to streamline our
operations and reduce waste. This may include using energy-efficient equipment, optimizing
our production processes, and carefully managing our inventory.

In addition to the factory overhead costs, we will also need to consider other organizational
costs associated with the project. These may include legal and administrative fees, marketing
and advertising expenses, and insurance costs.

By carefully managing our factory overhead costs and other organizational expenses, we can
help ensure the success of our Smart Traffic Management System project while minimizing our
costs and maximizing our profitability.

Administrative overheads

Administrative overheads refer to the general costs associated with managing and operating an
organization or project. These costs can include everything from office-related expenses to
human resources costs.

Here are some examples of administrative overheads that are related to a Smart Traffic
Management System project:

 Office Expenses: This includes any expenses associated with maintaining an office,
including rent, utilities, and office supplies.
 Accounting and Legal Fees: This includes any fees and expenses associated with
accounting and legal professionals hired to advise on various aspects of the project,
including taxes, contracts, and taxes.
 Human Resources Expenses: This includes the costs associated with managing the
people hired to work on the project. This can include wages, salaries, and benefits, as

45
 well as the overhead costs required to manage employees such as training, recruitment,
and employee benefits.
 Insurance Costs: This includes the cost of insuring the Smart Traffic Management
System project, the employees and the office space.

To manage administrative overheads, we need to develop a detailed budget plan and set
financial goals to keep the project profitable and within the budget. We would need to look at
how to effectively reduce expenses by creating strategies that are cost-effective and efficient.

By carefully managing administrative overheads, we can ensure effective operations of the

Smart Traffic Management System project and maximize profits.

Marketing overheads

Marketing overheads refer to the expenses incurred in promoting and selling a product or
service. These expenses may vary depending on the marketing strategy and approach used to
promote the Smart Traffic Management System project. Here are some examples of the
different types of marketing overhead costs that we should consider:

Sales Costs: This includes salaries and benefits for sales representatives, as well as
bonuses and commissions paid to them for successfully closing deals. Other costs
related to sales may include travel expenses, trade show or conference fees, and
promotional materials.
Advertising Costs: This includes the cost of creating and producing advertising
materials such as television, radio, and print ads as well as communication on digital
platforms. It also includes the cost of placing those advertisements in media outlets.
Public Relations Costs: This includes the cost of hiring a public relations firm to
manage the organization's image and the promotion of the Smart Traffic Management
System project through interviews/press releases.
Market Research Costs: This includes the cost of conducting market research to identify
customer needs and preferences, as well as identify potential competitors and market
opportunities.

46
In managing the marketing overhead costs, we may need to evaluate our marketing strategies
and focus on cost-effective methods that target potential customers effectively. This may
involve leveraging digital marketing techniques, attending industry events, and building
relationships with potential partners and stakeholders.

In summary, by carefully managing our marketing overheads costs and other organizational
expenses, we can help ensure the success of our Smart Traffic Management System project
while minimizing costs.

Depreciation and amortization costs

Depreciation and amortization costs are also important to consider as part of the overhead costs
for a Smart Traffic Management System project.

Depreciation costs refer to the loss in value of fixed assets over time due to wear and tear or
obsolescence. In a Smart Traffic Management System project, this may include hardware such
as sensors, cameras, and other equipment used as part of the system. Amortization costs are
similar, but they refer to the decrease in value of intangible assets, such as patents or software.

Few examples of different types of depreciation and amortization costs that may be applicable
to our project:

 Depreciation of Hardware: This includes the depreciation of all the hardware that will be
used in the Smart Traffic Management System, such as sensors, cameras, and other
equipment.
 Amortization of Software: This includes the amortization of the software used in the
Smart Traffic Management System, such as the software used to process data collected
by sensors or to automate traffic signals.
 Depreciation of Office Equipment: This includes the depreciation of all office
equipment used by the staff involved in the project, such as laptops, printers, and other
hardware.

To minimize depreciation and amortization costs, we may need to consider strategies such as
investing in high-quality, durable hardware and software that will be more resistant to

47
obsolescence. We may also need to develop a timeline for when certain equipment should be
replaced or upgraded.

In addition to depreciation and amortization costs, we will also need to consider other
organizational expenses associated with the project, such as marketing and advertising costs,
legal and administrative costs, and employee benefits.

Financing Costs

When it comes to the organization and overhead costs required for a Smart Traffic Management
System project, financing costs are another important consideration. These are costs associated
with securing and managing the financing needed to fund the project.

Types of financing costs that may be applicable to our project:

Interest Expenses: This includes the cost of borrowing money to finance the project,
including interest payments on loans, lines of credit, and other forms of debt financing.
Fees and Charges: This includes the fees charged by financial institutions for
processing loan applications and other financial transactions, as well as fees for
services such as wire transfers and foreign currency exchanges.
Credit Protection: This includes the cost of securing credit protection, such as
purchasing insurance to protect against default on loans or lines of credit.
Financial Management and Consulting: This includes the cost of hiring financial
professionals to manage the financing aspects of the project, such as accountants,
financial analysts, and investment bankers.

In minimizing the financing costs of the project, we may need to consider alternative sources of
financing, such as equity financing or crowdfunding. We may also need to carefully manage
our cash flow and expenses to ensure that we are staying within our budget and avoiding
unnecessary debt.

In addition to the financing costs, we will also need to consider other organizational expenses
associated with the project, such as legal and administrative costs, insurance costs, and
employee benefits.

48
We can help ensure the success of our Smart Traffic Management System project while
minimizing our costs and maximizing our profitability.

8. Human Resources

As we plan to develop a Smart Traffic Management System, we need to consider the types,
numbers, and costs of labor required to implement the project successfully. Depending on the
scope of the project, we would require different types of workers that possess different skills
and expertise. Some of the labor types and their potential costs include:

a) We will need software developers who can design and develop software systems
that facilitate Smart Traffic Management. The development of such software would
require a range of skills, including data analytics, machine learning, and user
interface design. We estimate that we would require a team of 4-5 software
developers with an average salary of 20,000-35,000 birr per months.

b) Since Smart Traffic Management System involves the deployment of hardware

components such as sensors and cameras, we will require experienced hardware
engineers. They will design, develop, and maintain the hardware components
necessary for the system to function properly. We estimate that we would require 2-
3 hardware engineers with an average salary 22,000-37,000 birr per months.

c) We will require project managers who will be responsible for overseeing the entire
Smart Traffic Management System project, from design to implementation. A
project manager will ensure that the project is completed on time and on budget.
We estimate that we will require a senior project manager with an average salary of
21,000-30,000 birr per months.

d) Data analysts would be required to analyze the data collected from sensors,
cameras, and other sources in real-time. Their primary responsibility would be to
identify patterns and trends in the data, and make recommendations to improve

49
 traffic flow. We estimate that we would require 2-3 data analysts with an average
salary of 25,000-50,000 birr per months.

e) Finally, we will require maintenance workers who will provide ongoing

maintenance, repairs, and upgrades to the Smart Traffic Management System.
Maintaining Smart Traffic Management may involve tasks such as replacing
sensors or cameras, updating software, or installing new hardware. We estimate
that we would require 3-4 maintenance workers with an average salary of 20,000-
32,000 birr per months.

It's essential to recognize that the number and cost of labor required would depend upon the
size, scope, and complexity of the Smart Traffic Management System project. Additional labor
types may be identified at a later stage, depending on the specific needs of the project.

8.1. Requirements in terms of Categories and Functions

As we plan to implement the Smart Traffic Management System, we recognize that we require
human resources in different categories and functions. Categorizing the human resource
requirements would enable us to organize work better and ensure the right skill sets are
available to accomplish the specific tasks. These categories and functions are:

a. Systems Development: This category involves developing the software infrastructure,

databases, and user interfaces that facilitate Smart Traffic Management System. The
required functions or roles for this category would include software developers,
software testers, database administrators, and user interface designers. The
development team should possess expertise in machine learning, data analytics, and
software architecture.
b. Hardware Development: This category involves designing hardware systems such as
traffic sensors, cameras and communication equipment that integrate seamlessly with
the software infrastructure. Required functions or roles in this category would include
hardware engineers, firmware developers, and communication system experts. The

50
 hardware development team should have experience in designing prototypes, testing
hardware systems, and performance analysis.
c. Data Management: This function is responsible for managing the large volumes of
traffic data generated by the sensors and cameras. Required functions or roles in this
category would include data analysts, data scientists, and database administrators. The
team should have experience in big data analysis, predictive modeling, and data
visualization.
d. Project Management: This function is responsible for leading and managing the Smart
Traffic Management System project. Required functions or roles in this category would
include Project Manager, Project Coordinator, and Business Analyst. The project
management team would be responsible for setting project goals, creating work
schedules, and ensuring the project is delivered on time, and within budget.
e. Operations and Maintenance: This category involves the operation, maintenance, and
support of the Smart Traffic Management System. Required functions or roles in this
category would include technical support personnel, system administrators, and
maintenance engineers. The operations and maintenance team should ensure the system
remains functional at all times, and any issues that arise are resolved in a timely
manner.

It is essential to note that the specific types of labor required would depend on the scale,
complexity, and budget of the Smart Traffic Management System project. Proper categorization
of the human resources needed would help us to plan, recruit, and allocate the right personnel to
the specific functions.

8.2. Requirements in Terms of Socioeconomic and Cultural Environment

When we plan to implement the Smart Traffic Management System, we recognize that the
project's success depends on the socioeconomic and cultural environment in which it will be

51
implemented. Based on the socioeconomic and cultural environment, the types of human
resources we would require are:

b. Gender and Diversity: As a project, we believe that diversity and inclusivity are important
to the success of the Smart Traffic Management System. Therefore, we would require
diverse human resources in regards to gender, ethnicity, and skill level. We would ensure
that diversity is maintained in every function or role of the project.
c. Socioeconomic background: We recognize that the socioeconomic background of the
human resources we require may have an impact on the project's success. We would aim to
recruit from different socioeconomic backgrounds and ensure that all personnel are
comfortable with working in an environment that has opportunities to learn new skills and
that is inclusive.
d. Education and Skills: We require human resources with the necessary educational and skills
requirements to deliver the Smart Traffic Management System project. Types of personnel
we would require include developers with experience in software development, hardware
engineers, project managers, and data analysts.
e. Communication Skills: The human resource requirements should have good
communication skills in order to work with stakeholders, personnel, and clients to ensure
successful project delivery.
f. Local Knowledge: The Smart Traffic Management System project will be installed in a
specific geographic location, and hence the project's success will need access to specific
knowledge that relates to the local context of the area. Therefore, we would require human
resources that have knowledge of that particular area.

In conclusion, we recognize that the socio-economic and cultural environment of the area in
which the Smart Traffic Management System project will be implemented is essential. As an
organization, we would aim to recruit human resources that are diverse in terms of gender,
ethnicity, and skills level, have good communication skills, and have local knowledge.

8.3. Requirements in terms of Project Related Requirements

52
As we move forward with the Smart Traffic Management System project, we recognize that the
success of the project depends on having the right human resources in place. Some of the
project-related requirements for human resources include:

 Understanding of the project scope and objectives: To ensure the project's success, it is
essential that the human resources we employ have a clear understanding of the project's
goals, scope, timeline, and budget. Every function or role of the Smart Traffic
Management System project should understand how their work aligns with the project
objectives. Developers, hardware engineers, data analysts, project managers, and
operations and maintenance human resources should have a clear understanding of the
project goals and their specific roles in achieving those goals.
 Project Management Competence: To deliver on the project requirements, we need to
make sure that we have experienced project managers on board. We require project
managers who have a track record of successful project delivery. We would require
project managers who can lead the team, direct the project milestones, and ensure that the
team delivers quality work, on time and within budget.
 Technical Competence: The Smart Traffic Management System project requires
professionals with a wide range of technical skills and knowledge. This would include
software developers proficient in programming languages such as Python, hardware
engineers, firmware developers, and communication equipment experts. The human
resources must have experience in dealing with complex technologies to ensure the
project's smooth delivery.
 Teamwork: The Smart Traffic Management System project is a complex project that
requires teamwork across different functions or roles. Every member should be able to
work collaboratively with each other functional role to solve problems and deliver on the
project goals. We would look for candidates who have worked in cross-functional teams
and have experience collaborating with colleagues with diverse backgrounds and
expertise.
 Resourcefulness: To successfully deliver the Smart Traffic Management System project,
the human resources must be resourceful and adaptable. They must be able to work under
challenging and dynamic circumstances. They should have the ability to solve problems,
be innovative, and deliver quality work.

53
The success of the Smart Traffic Management System project depends on having competent
and experienced human resources. We would require human resources who understand the
project objectives, have project management competence, technical skills and knowledge, can
work collaboratively, and are resourceful and adaptable.

8.4. Requirements in terms of Availability and Recruitment

In planning to develop and implement the Smart Traffic Management System, we need to
ensure that the right human resources are available and recruited to accomplish the project's
specific tasks. Types of human resources we would require and strategies for recruitment
include:

 Experienced Talent: To implement a Smart Traffic Management System, we would

require top experienced talents, especially in software development, hardware
engineering, data analytics, and project management. Recruiting experienced talent can be
achieved through posting job descriptions on recruitment websites, attending job fairs,
networking events, and employee referrals.
 In-house Talent: Organizations with in-house talent would proffer training opportunities
to their workers for enhancing their knowledge and inputting it into the project. Requiring
only incomplete knowledge will reduce the recruiting time. Recruiting in-house talent
would involve communicating with employees about their interests and providing them
with opportunities to develop relevant skills.
 Part-time Talent: Due to the scarcity of certain specialized skills, recruiting part-time
talent can be the best solution for short term needs in the project. A part-time talent will
work remotely or locally based on the needs of the project, and would require recruiters to
post job listings on platforms such as LinkedIn and Glassdoor to attract suitable
candidates.

 Interns: Interns can offer a fresh perspective on the Smart Traffic Management System
project and can even be recruited to work in teams. College students seeking internships
in a relevant discipline would be a great pool of talent. Recruitment strategies can involve
partnering with the local university or college to promote available internships for
students.

54
  Seasonal Talent: During peak seasons specified for activities in road safety and holidays,
the Smart Traffic Management System would require recruitments for seasonal personnel
to execute special duties. Recruitment methodologies would involve posting job
descriptions on specific recruiting websites, such as Indeed and Glassdoor.

 Freelancers: Freelancers generally have unique and specialized capabilities that can
contribute to the Smart Traffic Management System's project. Recruiting freelancers
would involve posting job descriptions on freelancing websites or working with talent
agencies that maintain a pool of freelancers.

Identifying the types of human resource required and strategies for recruiting them is essential
to ensure that we can successfully develop and implement the Smart Traffic Management
System. Recruiting top talents, promoting in-house training, recruiting seasonal talent or
freelancers, and engaging interns would be some of the strategies we would use to attract and
hire the right human resource for the project.

8.5. Requirements in terms of Training Plan

When it comes to the human resources requirements for a Smart Traffic Management System
project, there are several types of employees that we may need to hire. These types of
employees may have different skill sets or areas of expertise, so they will require different
levels of training.

Here are a few examples of different types of employees we may need to hire for our project,
along with some information on the training they may require:

 Traffic Engineers: These employees will likely require advanced training in transportation
engineering and traffic management, including understanding of traffic laws and
regulations, road safety standards, and use of traffic management software. Training

55
 should also cover specific aspects of Smart Traffic Management Systems, such as sensors,
data analysis, and traffic signal coordination.
 Software Engineers: These employees will require training on programming languages
and software development, particularly in areas relevant to Smart Traffic Management,
such as data analytics, machine learning, and artificial intelligence.
 Network Engineers: These employees will require training in computer networking and
network security, including understanding of network topologies and configurations,
network protocols, and secure data transmission.

In terms of a training plan, it is important to address the different levels of knowledge and
experience that employees may have when starting the project. We will need to design a
comprehensive training program that takes into account the different areas of expertise required
for the project and provides opportunities for employees to learn and develop new skills as the
project progresses.

The training plan should also include regular assessments to evaluate the effectiveness of the
training program. These assessments will allow us to make necessary adjustments to the
training plan and ensure that employees are acquiring the skills and knowledge they need to
successfully complete their assigned tasks.

A well-designed training plan is essential to ensuring that our team has the knowledge and skills
necessary to design, implement, and maintain a Smart Traffic Management System.

56
9. Financial analysis and investment appraisal

The financial analysis and investment appraisal of the Smart Traffic Management System
project will involve a comprehensive evaluation of the financial feasibility and potential return
on investment of the project. The following are some of the key aspects that will be considered
in the financial analysis and investment appraisal:

9.1. Estimation of the life of the project:

Based on our research and analysis, we estimate that our Smart Traffic Management System
project will have a lifespan of 10 years. We have carefully selected high-quality and durable
hardware and software components that are expected to last at least 10 years with proper
maintenance and updates. We have also secured ample funding to support the project's
development, implementation, and maintenance over the next 10 years.

Additionally, we will continuously monitor market demand and technology trends to ensure
that our Smart Traffic Management System remains competitive and effective. We will also
regularly update the system's hardware and software components to maintain its functionality
and accuracy.

Based on our market research and analysis, we estimate that the Smart Traffic Management
System will have a high demand in urban areas with heavy traffic.

9.2. Determining means of financing:

Based on our evaluation of the pros and cons of each financing option, we recommend the
following financing mix for our project:

1. Equity Financing: We propose to raise capital by selling equity in the project to

investors who are willing to invest in the project in exchange for a share of ownership.
This will provide us with the capital we need to fund the project's development and
implementation. We will seek out investment from venture capitalists, angel investors,
and other sources.
2. Debt Financing: We propose to borrow money from banks or other financial institutions
to finance the project. This will provide us with additional capital to support the

57
 project's development and implementation. We will work with financial advisors to
identify the best debt financing options available to us.
3. Grants: We propose to apply for grants from government agencies, non-profit
organizations, or private foundations that provide funding for projects that align with
their mission and objectives. This will provide us with additional funding to support the
project's development and implementation. We will work with grant writers to identify
and apply for suitable grants
9.3. Estimates of sales and production:

As project holders, we estimate that our Smart Traffic Management System can generate 10
million birr in sales revenue in the first year of operation and increase by 5% each year for the
following four years. We estimate that we can serve up to 100,000 commuters daily, with each
commuter paying an average fee of 5 birr per trip. Therefore, our estimated production is
500,000 trips per day, or 182.5 million trips per year.

9.4. Estimates of operating expenses:

We estimate that the operating expenses for our Smart Traffic Management System will be 6
million birr in the first year of operation and increase by 2% each year for the following four
years. Our operating expenses include personnel costs, hardware and software maintenance, and
regulatory compliance costs.

9.5. Profitability projection/income statement:

Our profitability projection/income statement provides an estimate of the project's revenue,

expenses, and net income over a specific period. We estimate that our system can generate
significant revenue based on our sales and production estimates. Our expenses include
operating expenses and other related costs, including personnel and regulatory costs. We project
a net income that is positive, which suggests that our Smart Traffic Management System project
is financially feasible.

Based on our sales and operating expense estimates, our profitability projection/income
statement for the first year of operation is as follows:

58
Table 2: Income statement

Revenue 10,000,000 birr

Operating Expenses 6,000,000 birr
Net Income 4,000,000 birr

Projected cash flow statement: Our projected cash flow statement provides an estimate of the
project's cash inflows and outflows over a specific period. We estimate the project's revenue
based on our sales and production estimates, while our expenses include operating expenses,
taxes, and other related expenses. We also consider the project's capital expenditures and any
significant cash outflows. Our projected cash flow statement shows that our Smart Traffic
Management System project is financially viable over the long term.

Table 3: Projected cash flow statement for the first year of operation

Cash Inflows Cash in birr

Revenue 10,000,000 birr
Operating Expenses 6,000,000 birr
Taxes 1,000,000 birr
Capital Expenditures 2,000,000 birr
Total Cash Outflows 9,000,000 birr
Net Cash Flow 1,000,000 birr

Projected balance sheet: Our projected balance sheet provides an estimate of the project's
assets, liabilities, and equity over a specific period. Our assets include hardware and software
components, and we factor in any potential depreciation or amortization expenses associated
with these assets. Our liabilities include any debt or other obligations associated with the
project, while our equity includes shareholder equity and any retained earnings. Our projected

59
balance sheet shows that our Smart Traffic Management System project is financially sound
and has the potential for long-term success.

Table 4: Projected balance sheet

Assets Amount (in millions)

Hardware and Software Components 10.0 birr
Accumulated Depreciation 0.5 birr
Total Assets 9.5 birr
Debt 3.0 birr
Shareholder Equity 6.5 birr
Total Liabilities and Equity 9.5 birr

In general, we are confident in the financial projections for the Smart Traffic Management
System, based on our estimates of sales and production, operating expenses, profitability
projection, income statement, projected cash flow statement, and projected balance sheet. We
believe that the system has the potential to generate significant revenue and profits, while also
providing a valuable service to urban areas with heavy traffic.

10. Project implementation schedule

As we propose the implementation of the Smart Traffic Management System, it is important to

have a clear project implementation schedule to ensure that the project is completed on time and
within budget. The implementation schedule should include the following key elements:

i. Research and Development: This activity involves researching and developing the
concept and design of the Smart Traffic Management System. This may include
conducting market research, identifying potential technologies to be used in the system,
and developing a prototype.
ii. System Design and Development: This activity involves designing and developing the
Smart Traffic Management System based on the research and prototype developed in
the previous activity. This include designing the hardware and software components of

60
 the system, integration of different technologies, and developing algorithms to analyze
and manage traffic flow.
iii. Hardware and Software Procurement: This activity involves identifying and procuring
the necessary hardware and software components required for the System. This include
sensors, cameras, servers, and other hardware, as well as software licenses and
subscriptions.
iv. Installation and Testing: This activity involves installing the hardware and software
components of the Smart Traffic Management System and testing their functionality.
This may include integrating the system with existing traffic infrastructure, testing the
accuracy of the system's algorithms, and ensuring that the system is operating correctly.
v. Employee Training: This activity involves training the employees who will be
responsible for operating and maintaining the Smart Traffic Management System. This
may include training on the hardware and software components, as well as training on
the system's algorithms and how to interpret and analyze the traffic data.
vi. Launch and Implementation: This activity involves launching and implementing the
system in the target area. This may include deploying the system across different
intersections and roads, testing the system's ability to manage traffic flow, and ensuring
that the system is operating effectively.
vii. Monitoring and Maintenance: This activity involves monitoring and maintaining its
hardware and software components to ensure that it continues to operate effectively.
This may include conducting routine maintenance, updating the system's software and
algorithms, and monitoring the system's traffic data to identify any potential issues or
areas for improvement

In our system, the activities are listed in the first column, along with their estimated timeframe
in the second column. The logical sequence of the activities is shown in the third column,
indicating which activities must be completed before others can begin. For instance, the System
Design and Development activity cannot begin until the Research and Development activity is
complete.

61
Table 5: The Gantt chart of activities

Activity Timeframe Logical Sequence

Research and Development 2 months N/A

System Design and Development 6 months Research and Development

Hardware and Software Procurement 1 month System Design and

Development

Installation and Testing 3 months Hardware and Software

Procurement

Employee Training 1 month Installation and Testing

62